According to FWD Life Vietnam JSC’s financial report for the first half of 2024, the company recorded a pre-tax profit of VND 291 billion, up 70.8% from the previous year. However, as of June 2024, FWD still incurred a cumulative loss of over VND 5,800 billion due to its strategy of prioritizing market share expansion.
Despite the significant loss, the income of FWD employees, as reported in the financial statements, remains higher than the average in the labor market.
In the first half of 2024, the company spent VND 314.5 billion on salaries for its 482 employees, a reduction of 43 people compared to the end of 2023. On average, the company spent over VND 104 million per employee per month.
According to statistics, this income level of FWD employees is nearly double that of Techcombank employees, who are known for their high salaries in the banking industry, with an average of VND 53 million per month. When compared to the average banker’s salary of VND 30 million, the FWD employees’ income of VND 104 million is even more impressive.
It’s not just FWD that offers competitive salaries; another insurance company, Prudential Vietnam, also allocates nearly VND 720 billion for employee compensation.
Specifically, Prudential Life Insurance Company Limited’s financial report for the first six months of the year showed a 31.79% decrease in pre-tax profit compared to the previous year, totaling VND 1,092 billion.
Despite the decline in profits, Prudential slightly increased its business management expenses to VND 1,304 billion. Of this, salary and related costs accounted for 55.14%, or nearly VND 720 billion, for their 1,536 employees. This headcount reflects a reduction of over 100 people compared to the 1,688 employees at the beginning of the year.
On average, each Prudential employee earns approximately VND 74.3 million per month. This salary is not only nearly ten times the average income of workers in the first six months of 2024 but also 1.4 times the highest salary in the banking industry.
However, the income of Prudential employees in the first six months of this year is lower than the average salary of VND 77.7 million per month that the company paid its employees in 2023. Last year, Prudential employees’ salaries were nearly nine times the average annual income of workers.
Another insurance company known for its generous salaries is Fubon Life Insurance Vietnam. Entering the Vietnamese market in 2008, Fubon is a life insurance company with 100% investment capital from Taiwan.
As of the end of June 2024, Fubon Vietnam had 115 employees, one less than at the end of 2023.
To compensate its 115 employees, the company spent more than VND 40 billion. On average, each company employee receives more than VND 58 million per month, which is several times higher than the country’s average income.
A Life Insurance Company Pours Over $730 Million into the Stock Market, Holding a Large Chunk of Bank Shares
As of the end of June, this company held over 494.5 million listed securities and traded securities on the UPCoM system, valued at more than VND 17.3 trillion. In the first half of 2024, this insurance enterprise invested over VND 2.4 trillion in additional purchases of securities.
“Struggling Life Insurance Businesses: Navigating the Storm of Declining Sales and Losses”
The economic downturn and the lingering mistrust of life insurance among consumers have dealt a severe blow to businesses operating in this field. Many companies have witnessed a significant decline in their performance, with some even plunging into losses.
